Technology

How fuel prices have surged since start of Iran war

· 5 min read
W8media. W8media Petrol Shortages Costo Bushey. Motorists wait in their cars for over an hour to fill their tanks ahead of the looming price increase and forecasted fuel shortages in the uk. Costco Superstore in Bushey , Herts. 03/03/2026.
Motorists wait in their cars for over an hour to fill their tanks earlier this week at Costco Superstore in Bushey (Picture: w8media)

Diesel prices have surged to a 16-month high since the start of the conflict in the Middle East, new figures suggest.

The RAC said the average price of a litre of the fuel at UK forecourts has gone up by nearly 6p since Saturday to 148p.

It has not been this expensive since mid-August 2024.

Average petrol prices have risen by almost 4p per litre since Saturday to 137p.

The increases mean filling a typical 55-litre family car with petrol has become £2 more expensive, with a rise of about £3.30 for diesel cars.

Disruption to tanker traffic in the Middle East has sparked a rise in oil prices, which have a significant effect on wholesale fuel prices.

Fire and smoke rise in the Fujairah oil industry zone, caused by debris after interception of a drone by air defenses, according to the Fujairah media office, amid the U.S.-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 4, 2026. REUTERS/Amr Alfiky
Fire and smoke rise in the Fujairah oil industry zone (Picture: Reuters)
Mandatory Credit: Photo by Maureen McLean/Shutterstock (16723530h) 4th March, 2026. A tanker delivering fuel to a Shell petrol station in Dedworth, Windsor, Berkshire where today petrol prices were 139.9 and diesel 150.9. American President Donald Trump last weekend together with Israel, launched an attack on Iran. As a result three ships have been hit by Iran in the Strait of Hormuz and the Gulf of Oman. Many oil tankers pass through the Strait of Hormuz which is now effectively closed. Oil prices have risen sharply today following the Iranian conflict. As a result the cost and supply of fuel to petrol stations in the UK is likely to be adversely impacted. Although the UK has plentiful supplies of oil off the coast of Scotland, the Rosebank field, one of the largest untapped fields in UK waters, the licence to extract oil has been overturned War On Iran, Impact upon fuel availability and price, Dedworth, Windsor, Berkshire, UK - 04 Mar 2026
A tanker delivering fuel to a Shell petrol station in Dedworth, Windsor (Picture: Maureen McLean/Shutterstock)
No Unleaded fuel at some pumps at Tesco petrol station South Queensferry . March 3, 2026. // There are fears that military action in Iran could disrupt the global oil supply, with distribution along the crucial Strait of Hormuz already interrupted. Photo released 03/03/2026
There are fears that military action in Iran could disrupt the global oil supply, with distribution along the crucial Strait of Hormuz already interrupted (Picture: SWNS)

The price of Brent crude oil has risen by about 21% over the past week, exceeding 88 US dollars (£66) a barrel on Friday.

RAC head of policy Simon Williams said: ‘While wholesale costs for any retailer buying in new stock will have gone up, it normally takes two weeks for price changes to work their way through to the forecourt.

‘Brent crude jumped to 85 US dollars (£64) on Thursday, something we haven’t seen since July 2024.

‘If the price of a barrel stays at this level, or increases, then further forecourt rises will be inevitable.

‘While the rate of increase has been fast, we’re fortunately a long way from the record prices of 2022 when the average price of petrol hit 191.5p and diesel 199p.’

Analysis of the historic link between oil and fuel prices by think tank the Energy and Climate Intelligence Unit (ECIU) found that oil trading at 100 dollars (£75) a barrel could see petrol prices hit 150p per litre.

Earlier this week, the AA said there was ‘no need for drivers to break their refuelling routine’.

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